"Amid a slack period for apparel retailers, Limited Brands Inc. surprised investors by agreeing to take a loss on the sale of most of its Limited Stores chain.

"Limited, based in Columbus, Ohio, continued its gradual exit from the apparel business by agreeing to transfer a 75% ownership interest in Limited Stores to affiliates of private-equity firm Sun Capital Partners Inc. The terms of the deal indicated there was little buyer interest in the company's namesake division, founded in 1963 by Chief Executive Leslie Wexner. The company said in May that it was exploring options for the chain.

"Though Limited Stores once was one of the most powerful brands in specialty retail, its parent gradually had been closing Limited locations as it invested in its Victoria's Secret and Bath & Body Works chains. While that extracts Limited from a turbulent business, the moves also leave the company more vulnerable to downturns at Victoria's Secret or Bath & Body Works…

"The Limited chain once wielded such a popular brand that in the 1980s, the company was the nation's largest specialty retailer. But in recent years, executives hadn't made the division a priority, and the muddled collection of styles in its stores reflected the lack of focus."